At least there’s one thing consistent about Bitcoin and the associated cryptos. It’s one hell of a roller coaster drive in the price action. Just look back at the last two years. From 2021, when everything seemed to be going up to a very long, cold crypto winter in 2022 — it’s been a tale of two extremes. As if this year wasn’t hard enough for the digital assets, two massive contagion events rocked the cryptoverse even further. A
First, it was the stellar collapse of the Terra/Luna stablecoin, and just when cryptos seemed to be coming out of the shock, FTX went bankrupt. And the year is winding down with reports of Crypto lender BlockFi filing for bankruptcy as well. To top it all off, central banks are aggressively increasing interest rates — drying out easy money, which usually flows to risky assets like cryptos. If nothing else changes, it seems like cryptos are going to miss the holiday season euphoria — the last two Bitcoin price peaks having come in Nov-Dec.
Crypto winter is evident from the top chart above. Virtually every asset has outperformed Bitcoin (BTC) significantly — Stocks, Bonds and Commodities. The triple-pane chart shows that Bitcoin is in a strong bearish trend against all these major asset classes. And it is not showing any sign of reversal anytime soon. It’s safe to say that investors are avoiding riskier assets and parking their money where it’s treated best.
On the other hand, the entities holding < 1 BTC — also labeled as ??have recorded two distinctive all-time high (ATH) waves of balance increase over the last 5 months. Overall, this cohort has been on a steady accumulating spree, as can be seen in the lower chart above.
According to Glassnode, Shrimps have added +96.2k BTC to their holdings since the collapse of FTX and now hold over 1.21M BTC, equivalent to a non-trivial 6.3% of the circulating supply. However, BTC whales, who are entities holding 1k+ BTC have either kept their holdings steady or exited their positions — pointing to overall bearish sentiment. The only thing that can salvage some pride for cryptos this year is a Santa Claus rally.
Originally Published on
LinkedInStockTwitsNewsletter
